Netflix, a major American streaming service, is placing its bets on India becoming a global hub for entertainment. Ted Sarandos, co-CEO of Netflix and currently on a brief trip to India, told reporters on Friday that in 2022, the India market would experience the fastest growth. India had the highest net addition of subscribers anywhere in the world. Sarandos elaborated on the three success criteria of engagement, revenue, and profit, saying, “We had a very tough start in 2022 and a very strong end.”
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In India, Netflix saw a 25% revenue increase and a 30% increase in engagement and watch time in 2022. In the first few weeks of release, movies like RRR and Gangubai attracted 73 million and 50 million hours of viewing time, respectively. Even though Netflix has had difficulty competing in the fiercely competitive Indian OTT market, co-CEO Ted Sarandos claims that the country is where Netflix is expanding the fastest. Sarandos claimed that in India, Netflix’s engagement and watch time increased by 30% in 2022, while its revenue increased by 25%.
The co-CEO of Netflix also claimed that the Netflix-streaming Indian movies RRR and Gangubai Kathiawadi are both big hits in western markets. The India market would experience the fastest growth. India had the highest net addition of subscribers anywhere in the world. Sarandos elaborated on the three success criteria of engagement, revenue, and profit, saying, “We had a very tough start in 2022 and a very strong end.” When asked if, in light of the BBC controversy, They would consider documentaries or some best Netflix series centered on Indian political figures or issues, Sarandos responded, “We are here to entertain. That is not to say that political stories cannot be entertaining.
Netflix has produced content that has generated controversy. He continued, but the company’s “goal is to entertain, not to fight or enrage the government or the people of the country.” Sarandos claimed that the regulatory environment and problems like content cuts were not different from anywhere else in the world. “We respect local laws where we conduct business.” Netflix and its executives are excited about India because of movies like RRR and Gangubai. In terms of the business, Netflix is not yet considering India as a market for advertising. On that, there is no strategy for 2023. So far, only 12 markets have introduced an advertising-driven model in addition to the current subscription model. In India, Netflix is “nudging” people in that direction. While globally, the company is actively trying to convert the shared password model to real accounts to generate revenue. We want to convey the idea that personalization is better when the password is kept private, according to Sarandos.
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Although Netflix withheld the budget for Indian content, the growth rates suggest that it may rise this year. Contrary to some of its rivals. Netflix does not have any plans to reduce its estimated $17 billion global content budget. The India business has not been impacted, according to Netflix executives, despite the overall tech slowdown and downsizing. Around 250 people work for Netflix in India, with Delhi and Mumbai serving as the main hubs.
Netflix, a successful company, thinks that its success in India is sustainable and that, to repeat many others. This is the decade of India. According to the largest streaming service provider, Indian culture is being exported to other parts of the world. Through films and television shows centered on the local environment. Lower subscription prices, according to Netflix, the only profitable pure-play streaming service in the world. Have rekindled the country’s economy and made it the fastest-growing market for the company globally.
